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Stock Options and Grants
 12 Months Ended
Dec. 31, 2012
Stock Options and Grants [Abstract]  
Stock Options and Grants
16.   Stock Options and Grants
 
2011 Plan – On July 27, 2011, in connection with the Merger, the Company obtained the written consent of holders of a majority of its outstanding common stock approving the 2011 Incentive Stock Plan (the “2011 Plan”). The 2011 Plan covers up to 8,000,000 shares of common stock, and all officers, directors, employees, consultants and advisors are eligible to be granted awards under the 2011 Plan. An incentive stock option may be granted under the 2011 Plan only to a person who, at the time of the grant, is an employee of the Company or its subsidiaries. The 2011 Plan expires on July 26, 2021, and is administered by the Company’s Board. As of December 31, 2012, there were 153,928 shares of common stock available for issuance under the 2011 Plan.
 
During the year ended December 31, 2012, the Company’s board of directors approved the issuance of up to an additional 2,000,000 shares of the Company’s Common Stock in the form of restricted stock or options. These options generally have the same terms and conditions as those provided under the 2011 Plan, however, the authorization of these options is not subject to shareholder approval. The issuance of these options will be approved by the Company’s board of directors on a case-by-case basis.  As of December 31, 2012, there were 528,571 shares of common stock available for issuance under this approval.
 
A summary of stock option activity and changes during the years  ended December 31, 2012 and 2011 are presented below:
   
Shares
    
Weighted Average Fair Value Per Share
    
Weighted Average Exercise Price Per Share
    
Weighted Average Remaining Terms (in years)
    
Aggregate Intrinsic Value
  
Outstanding – January 1, 2011
     -     $ -     $ -              
Granted
     5,407,500       0.09       0.20              
Exercised
     -       -       -              
Cancelled
     -       -       -              
Outstanding – December 31, 2011
     5,407,500     $ 0.09     $ 0.20       9.86     $ 966,250  
Granted
     3,910,001       0.14       0.57                  
Exercised
     -       -       -                  
Cancelled
     -       -       -                  
Outstanding – December 31, 2012
     9,317,501     $ 0.11     $ 0.36       9.03     $ 539,650  
Exercisable – December 31, 2011
     1,719,167     $ 0.09     $ 0.20       9.86     $ 307,083  
Exercisable – December 31, 2012
     4,973,333     $ 0.11     $ 0.30       8.97     $ 359,600  
 
For the year ended December 31, 2012 and 2011, the Company recognized stock-based compensation expense of $508,265 and $157,551, respectively, which is included in payroll and related expenses in the accompanying consolidated statements of operations.
 
As of December 31 2012, there was $386,950 of total unrecognized compensation costs related to non-vested stock options, which will be expensed over a weighted average period of 1.07 years. The intrinsic value is calculated as the difference between the fair value of the stock price at year end and the exercise price of each of the outstanding stock options. The fair value of the stock price at December 31, 2012 and December 31, 2011 was $0.30 per share and $0.38 per share, respectively, as determined by using a weighted value between the income approach method, the public company market multiple method, and a fair value method developed by the Company.
 
On November 7, 2011 and November 11, 2011, the Stock Option Committee of the Company’s Board of Directors granted an aggregate 4,387,500 options to purchase common stock to certain named executive officers, certain other employees of the Company, and to directors of the Company (“2011 Option Grants”). All of these options are 10 year options and were granted under the 2011 Plan with an exercise price ranging from $0.20 to $0.27. One third of the options vest upon the grant date, the second third vests on the first anniversary of the grant date, and the remaining third vests on the second anniversary of the grant date.
 
Also on November 7, 2011, a consultant of the Company was granted an option to purchase 1,000,000 shares of the Company’s common stock, with an exercise price of $0.20. These options were granted under the same terms of the 2011 Option Grants.
 
On November 15, 2011, the Company executed a two year consulting agreement with a consultant, to act as a Senior Advisor of the Company. In consideration for the services to be performed under the agreement, the Company shall on the last business day of each month during the term, grant the consultant an option to purchase 10,000 shares of the Company’s Common Stock with an exercise price ranging from $0.25 to $0.60. The terms of these options are the same as the 2011 Option Grants. During the year ending December 31, 2012 and 2011, the consultant was granted options to purchase 120,000 and 20,000, respectively, shares of the Company’s Common Stock.
 
On January 2, 2012, the Chief Executive Officer of the Company was granted an option to purchase 2,000,000 shares of the Company’s Common Stock with an exercise price of $0.75. These options were granted under the same terms of the 2011 Option Grants.
 
On March 20, 2012, three employees of the Company were granted options to purchase a total of 215,000 shares of the Company’s Common Stock with an exercise price of $0.50. These options were granted under the same terms of the 2011 Option Grants.
 
On March 21, 2012, seven employees and directors of the Company were granted options to purchase 155,000 shares of the Company’s Common Stock with an exercise price of $0.50. These options were granted under the same terms of the 2011 Option Grants.
 
On June 20, 2012, four consultants of the Company were granted options to purchase 195,000 shares of the Company’s Common Stock with an exercise price of $0.28.  These options were granted separate and apart from the 2011 Plan and were not granted from the shares available under the Company’s 2011 Plan.  One-third of the options vest upon the grant date, the second third vests on December 20, 2012 and the remaining third vests on June 20, 2013.
 
On August 7, 2012, eight executives and directors of the Company were granted options to purchase 125,001 shares of the Company’s Common Stock with an exercise price of $0.35. These options were granted under the same terms of the 2011 Option Grants.
 
On August 10, 2012, two consultants of the Company were granted options to purchase 1,100,000 shares of the Company’s Common Stock with an exercise price of $0.35. These options were granted under the same terms of the 2011 Option Grants.
 
The fair value of the stock-based option awards granted during the years ended December 31, 2012 and 2011 were estimated at the date of grant using the Black-Scholes option valuation model with the following assumptions:
 
   
2012
    
2011
  
Expected dividend yield
     0.00 %     0.00 %
Expected stock volatility
     50 %     50 %
Risk-free interest rate
     0.59 – 1.22 %     0.83 – 0.96 %
Expected life
  
5.25-10 years
    
5.47-5.5 years
  
 
Because the Company does not have significant historical data on employee exercise behavior, the Company uses the “Simplified Method” to calculate the expected life of the stock-based option awards granted to employees. The simplified method is calculated by averaging the vesting period and contractual term of the options.